ANALYSIS OF THE LINK BETWEEN CORPORATE GOVERNANCE AND THE PANDEMIC INVESTMENT DECISION

Abstract

In this paper we want to make a presentation of the investments made by companies affected by the coronavirus pandemic and the way in which corporate governance has managed this decision. The crisis caused by the Coronavirus pandemic has affected the HoReCa industry the most in the world (HoReCa is a sector of the hotel and food industry "especially food and beverage establishments"). The crisis caused by Covid-19 has put and continues to put pressure on the Boards of Directors. In large companies, the management of a company is the one that will support the pandemic management on a daily basis. Thus, the Board of Directors has a crucial role, given that it is the body with the ultimate legal responsibility for the organization. It must monitor the actions of managers, assess whether the most appropriate measures are taken. According to economic theory, the demand for investment in pandemics is likely to decrease, as the lack of labor in the economy suppresses the need for large investments. Thus, in order to highlight the effects produced by the pandemic on the investment decision of corporate governance, I will use the competitiveness indicator. In this way I will be able to calculate corporate governance through the responsibility of corporate governance, and competitiveness in the field of analysis meant saving from bankruptcy, surviving the business. In the light of this paper, I would like to highlight the relationship between pandemic and competitiveness-investment. Thus, I will demonstrate how close the connection is between the Boards of Directors and the investment decision during the pandemic.

Keywords

• corporate governance